Enhance Energy

CCS Series: Government Subsidies Keep Alberta’s CCS Pipe Dream Afloat

carbon capture and storage

This is the second installment of a two-part series on carbon capture and storage. Read Part 1, Alberta's Carbon Capture and Storage Plan Stagnate as Carbon Price Lags.

As Alberta falls behind on its goal to capture 30 million tonnes of carbon emissions a year by 2020, hundreds of millions of dollars in government subsidies are being pumped into the carbon capture and storage (CCS) sector.

Enhance Energy’s Alberta Carbon Trunk Line project is receiving $495 million from Alberta and $63.3 million from Ottawa. Enhance says on its website the project would have been much smaller without the government investment.

Shell Canada, with partners Chevron Canada Ltd. and Marathon Oil Corp., is developing Alberta’s only other CCS project, called Quest, with $120 million in federal and $745 million in provincial support. Shell aims to sequester more than one million tonnes of carbon dioxide per year from its Scotford upgrader, starting in late 2015.

CCS Series: Alberta’s Carbon Capture and Storage Plans Stagnate as Carbon Price Lags

carbon capture and storage

This is the first installment of a two-part series on carbon capture and storage. Read Part 2, Government Subsidies Keep Alberta's CCS Dream Afloat.

Alberta is falling behind on its goal to capture 30 million tonnes of carbon emissions a year by 2020 — and growth in the carbon capture and storage (CCS) industry will only come if the price of carbon rises significantly or government mandates CCS through regulation, experts and officials say.  

Currently, only two CCS projects are in the works in Alberta. If both projects come on line in time they will sequester at best three or four million tonnes of carbon a year by 2020 — just a tenth of the province’s target.

Enhance Energy Inc. is moving ahead this spring with building its Alberta Carbon Trunk Line, which the company calls the world’s largest carbon capture and storage project.

The carbon trunk line will include a 240-kilometre pipeline to capture waste carbon from Alberta’s industrial heartland and pipe it south to the Lacombe area, where it will be injected into depleted oil reservoirs to help extract light oil, before being stored underground.

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